Government mulls Medibank sale

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The federal government is to review its ownership of Medibank
Private, announcing today it would update a scoping study of the
possible sale.

Finance Minister Nick Minchin said the updated study would
examine the operation and structure of Medibank Private, analyse
the industry and policy environment in which it operates and
consider options for the government's future ownership.

Senator Minchin said it would also examine the nature of its
corporate structure and the effect of a sale on consumers, members
and employees of Medibank and other stakeholders.

"Updating the scoping study will not bind the government to sell
Medibank Private, in any particular timeframe or way," he said in a
statement.

"Any decision to sell or retain Medibank Private would be made
after the scoping study."

The last scoping study was done in 2003. That found that market
conditions, and Medibank Private's $175 million loss in the 2001/02
financial year, were against a possible sale.

Senator Minchin said since then Medibank Private had improved
its financial performance.